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If Disposable Income Increases by $500 Million, and Consumption Increases

Question 239

Multiple Choice

If disposable income increases by $500 million, and consumption increases by $400 million, then the marginal propensity to consume is

A) 1.25.
B) 0.8.
C) 0.6.
D) 0.4.
E) 0.2.

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